Exam 18: Exploratory Factor Analysis

An accountancy firm would like to establish groups of similar taxation policies based on a database they have populated.They are faced with Kaiser's criterion for retaining factors.What rule should they follow for retaining factors?

A consultant has asked you to distinguish between factor analysis and principal component analysis.What is the latter most commonly used for?

Rotation means?

Which of the following must a business researcher ensure is met before interpreting factors?

Which of the following would you not do or use when deciding how many factors to retain from an exploratory factor analysis?

Based on the following output,which item of the questionnaire would improve the reliability of the scale most if it was removed? R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha If Item if Item Total if Item Deleted Deleted Correlation Deleted Q1 54.1282 166.2200 .5505 .9082 Q2 54.5641 165.0418 .4917 .9092 Q3 56.0256 159.4467 .5719 .9072 Q4 54.6667 158.5439 .6972 .9039 Q5 55.0769 159.9676 .6225 .9058 Q6 54.9744 158.3414 .6422 .9052 Q7 54.6667 160.1228 .6374 .9055 Q8 54.5385 159.9393 .6314 .9056 Q9 55.1538 152.5020 .6596 .9048 Q10 55.6154 160.0850 .5321 .9084 Q12 56.0256 170.8151 .2423 .9156 Q14 54.3846 164.1377 .5508 .9078 Q16 54.9487 163.4710 .4447 .9108 Q17 55.0769 155.3887 .6760 .9041 Q18 55.5897 157.1430 .6421 .9051 Q19 56.0513 165.3131 .5756 .9076 Q20 55.0769 163.0729 .4870 .9095 Q21 55.1026 152.9892 .7586 .9015 Reliability Coefficients N of Cases = 39.0 N of Items = 18 Alpha = .9118

A colleague has asked you to explain which of the following statements is not true of exploratory factor analysis (EFA)?

The scree plot,such as the one used in Q1,represents a plot of?

Similarly,oblique rotation should be used when?

Most researchers use exploratory factor analysis to?

Which of these is a form of oblique rotation?

A sports manufacturer performs a customer satisfaction survey,and would like to reduce the scale items into a smaller number of factors.What does the following output suggest?

When interpreting Cronbach's alpha in business research,a value above ____ generally indicates a reliable scale?

Some debate over rotation methods has caused confusion amongst analysts working for the grocery retailer.You have been asked to explain that varimax rotation should be used when?

Nine items from a scale of grocery store service quality were assessed by exploratory factor analysis.Based on this scree plot,how many factors should be extracted?

Factor loadings are?